Investing in Dubai real estate presents several attractive benefits for investors, ranging from tax incentives to growth opportunities. Below are some of these benefits:
- Tax Exemption
Dubai is known for its favorable tax regime, with no personal income or capital gains taxes. This can significantly increase the return on investment, as owners are not subject to taxes on rental income or resale profits.
- Rental Profitability
The rental market in Dubai offers high yields, with rates of return that often exceed those of other global property markets. Profits can reach annual rates of between 5% and 9% (on long-term rentals), depending on location and property type. When considering short-term rentals, the percentage of profits can double or exceed that figure.
- High Profitability for Off-Plan Purchase and Resale
Dubai’s off-plan purchase and resale market offers very high yields, with return rates that often exceed those of other global property markets. Resales of units purchased off-plan can generate profits of between 20% and 50% in only one year, depending on the location and type of property. If we add to this the fact that real estate developers facilitate access to new construction projects, financing their acquisition as if they were a financial entity (but without interest) through comfortable quarterly terms and even monthly, access to these types of investment opportunities becomes extremely easy, boosting the local economy. However, it is essential to get expert guidance on selecting the right developer and the right off-plan project that will result in the outcome we expect to have. Making a wrong decision on this crucial selection criteria might lead to non-desired results, which we always want to avoid.
- Economic Growth and Development
Dubai has experienced impressive economic growth, driven by diversification in tourism, trade, aviation, and technology sectors. Continued investment in infrastructure and urban development projects, such as Expo 2020 and other megaprojects, such as the announcement of the new Al Maktoum Airport, which will become the largest airport in the world, multiplying by five the size of the current Dubai International Airport, promotes a favorable environment for the appreciation of property values. It is estimated that the new construction developments being launched near the new airport, called “Dubai South,” will increase their value very quickly, mainly due to the demand for housing that the workers in charge of managing the airport will require. The air traffic estimated to be managed will be 260 Million passengers annually.
- Stability and Security
The emirate is known for its political and economic stability and for being one of the safest places in the world, making it an attractive destination for foreign investors. Strict regulations and transparency in the real estate sector provide a reliable investment environment.
- Residence by Investment
Dubai offers the possibility of obtaining residency visas through real estate investment. Investors who purchase properties above certain thresholds may qualify for long-term residence visas, adding additional value to the investment.
For example, by investing 1 million AED (United Arab Emirates Dirhams, which would be about 250,000 Euros), the investor can obtain a 2-year, renewable residency.
If, on the other hand, the investor decides to make an investment of 2 million AED (about 500,000 Euros), they would automatically be eligible for the Golden Visa, which is valid for 10 years and can include the investor’s family.
Finally, we also want to inform you about the possibility of enjoying the “Retirement Visa.” This does not require any real estate investment, and you only need to justify an income of 20,000 Dirhams per month (approximately 5,000 Euros).
Other types of residence visas are linked to the creation of companies and are available for only 2,000 Euros. Contact us for more information.
- International and Diversified Market
Dubai is a global hub with a significant expatriate population, creating constant and diversified demand in the real estate market. The city attracts professionals and businessmen from all over the world, ensuring stable demand for both commercial and residential properties.
- World Class Infrastructure
Dubai’s infrastructure is world-class, with modern transport networks, world-class airports, luxury shopping malls, and a wide range of services and amenities. This advanced infrastructure increases the attractiveness of real estate investments.
- Ease of Doing Business
Dubai has implemented policies to facilitate foreign investment, including free zones where investors can fully own companies. Furthermore, the property purchasing process is relatively simple and well-regulated. We always suggest counting on expert real estate advice to guide and support you during purchasing. As registered Real Estate brokers licensed by Dubai Land Department, with license 43197, it will be our pleasure to help and guide you during this purchasing process to ensure you have a pleasant experience and also to ensure your investment goals and capital appreciation are achieved.
- Portfolio Diversification
Investing in real estate in Dubai can be a great way to diversify an investment portfolio, providing a mix of assets that may be less vulnerable to fluctuations in global financial markets.
- Global Events and Tourism
The constant flow of tourists and the organization of global events, such as Expo 2020 or GITEX (one of the world’s largest technology fairs) increase the demand for short-term rental properties, which can generate additional income for real estate owners.
In summary, investing in Dubai real estate offers a combination of tax exemption, high rental returns, economic growth, stability, and additional opportunities such as residence by investment. These factors make Dubai an attractive destination for real estate investors worldwide.
If you want a free consulting session with me, do not hesitate to contact me using the form on this website or by messaging me at +971 585893086. I will be happy to help you! 🙂
Greetings,
David Moya
